Oregon relies on income taxes more than any state
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Oregon relies more heavily on income taxes than any other state government, according to new Census data.
Why it matters: It means Oregon's revenue is more sensitive to swings in wages, investment income and business profits.
By the numbers: In 2025, 27 states got their biggest share of tax revenue from sales and gross receipts taxes, while 21 relied most heavily on income taxes — individual and corporate combined, according to an Axios analysis of new Census state tax data.
- 71% of Oregon's tax revenue came from income taxes in 2025, with just 20% coming from sales tax and 9% coming from other taxes.
- That's a far cry from 1950, when revenue was split between income and sales tax, at 47% and 30% respectively.
Zoom out: Oregon is followed by New York and Massachusetts, which each derived 67% of tax revenue from income taxes last year and California (60%).
- The most sales-dependent states were Texas (87% of state tax revenue), South Dakota (83%) and Florida (80%).
Context: Oregon is widely known as one of the few states without a general sales tax, but we still tax purchases of things like gas, tobacco and weed.
- Plus: The combination of city, county and state taxes has left Multnomah County residents shouldering one of the highest tax burdens in the country.
The bottom line: Places like Oregon that depend heavily on income taxes have budgets more exposed to high earners, business profits, bonuses and market swings.